It was triggered by the resignation of former Ministerialist Premier Walter James, who was appointed to take up the role of Agent General for Western Australia.

Walter James had been the member for East Perth in the Western Australian Legislative Assembly since 1894, and served as the premier and attorney-general as part of the Ministerialists from July 1902.

The following month, Daglish offered James the role of Agent General for Western Australia representing the state in London.

[3][4] It was unanimously agreed that James was suited for the position, but some were sceptical of Daglish's motives,[4] believing that he was trying to get his main political rival out of parliament and was possibly trying to have the Labor Party win the ensuing by-election.

[5] The move also saw disillusion grow within the Labor Party's rank-and-file, as one of their main attacks on James during his premiership was that he gave cabinet positions out as bribes to gain support, similar to what Daglish was doing now.